JUST look at Leong Seng Wui, who holds the executive directorship in Hong Seng Consolidated Bhd and Revenue Group Bhd.
BOTH those companies have license to and are operating very money lending activities, which leads to anti competitive practises.
THE housing minister ,Nga Kor Ming who happens to be from DAP, should get of his backside and do some serious reading on how banking crisis tend to explode in our faces.
BURRIED deep in the International Monetary Funds library, is a paper by Anil Ari and Sophia Chen entitiled ; The Dynamics of Non-Performing Loans during Banking Crises.
THE author says READ : Non performing loans above 7 per cent , often ends up with a burst credit bubble.
AS at end of 2023 READ : Market value for moneylenders and pawnbrokers in credit community industry was at RM24.8 billion in 2023.
IS there a bubble forming ? WELL let's just look at Hong Seng Consolidated where the company had given our RM44.849 million.
NOW VIEW: the default rate of its bad loans which is RM5.188 million which comes out to about 11.56 per cent.
REGARDLESS if one views the NPLs at Hong Seng as reasonable or not, one cannot argue against the poor secured asset qualities taken by Hong Seng for giving out the loans.,
ONLY a madman or a highly suspicious entity will tell you taking a RM13.874 million security in return for giving out a loan of RM48 million is good BUSINESS.
